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Synopsis

The High Court of Jammu and Kashmir and Ladakh has rebuked the practice of lawyers demanding a portion of compensation awarded to clients in litigation cases. The court observed that such behaviour constitutes professional misconduct on the part of the legal counsel.

The judgment was delivered by the court, presided over by Justice Sanjay Dhar. The petitioner, Munni, approached the court with a writ petition alleging that her lawyer was insisting on receiving a share of the compensation granted to her in a legal dispute as professional fees.

Upon hearing the case, the court expressed strong disapproval of the lawyer's actions, stating, “The counsel cannot claim any share out of the fruits of litigants from his/her client as fee and if at all such a thing has happened, it is a case of professional misconduct on the part of the counsel. Such like conduct is not expected of a person belonging to the legal profession.”

Munni had been awarded Rs 13.5 lakhs in compensation by a Lok Adalat on September 09, 2023, which was deposited with the Motor Accidents Claims Tribunal (MACT) at Kathua. However, a disagreement arose between her and her lawyer regarding the latter's demand for a percentage of the compensation amount as a fee.

This disagreement led to the MACT withholding the compensation amount, causing further distress to Munni. The high court took a serious stance on the matter, criticising the involvement of the tribunal in disputes over legal fees.

“If on account of a dispute between the claimant and her counsel regarding professional fee, the Tribunal is not releasing the amount deposited pursuant to the award of the Lok Adalat in favour of the rightful claimants, the same is highly objectionable. A court or a Tribunal is not expected to become a party to the dispute about counsel fee between a litigant and his lawyer,” the court emphasised.

In response to Munni's plight, the court directed the MACT in Kathua to release the deposited compensation amount in accordance with the law to her immediately upon her request.

Case Title: Munni vs Presiding Officer Motor Accident Claim Tribunal Kathua